As a recent survey reveals fund managers are hiking cash weightings, Maria Merricks asks three experts whether it is the right move to be making...
'The alternatives are just too unattractive' David Coombs, head of multi-asset investments, Rathbones We would not tactically allocate to cash because that smacks of market-timing and, quite frankly, we do not believe in that. There is so much luck involved in doing that to effect. However, an important point to note is that, over the last 12 months, we have had to use cash as an asset class. In a world of negative real yields and incredibly little value left in fixed income markets, the asset class is no longer able to fulfil the role of being the ‘safer' part of a portfolio...
To continue reading this article...
Join Professional Adviser for free
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes